PANASONIC, ONE of Japan’s best known brands, reported a record loss on slumping sales of flat panel TVs, but promised a return to profit this year under a turnaround plan that faces deepening investor scepticism.
Panasonic shares fell to a 32-year low ahead of the results, in a wave of selling that also hit rivals Sony and Sharp.
Sales of TVs, cameras and recorders combined fell 21 per cent for the year ended March 31st and the strong yen cut into overseas earnings on everything from electronic components to refrigerators.
Panasonic president Fumio Ohtsubo, who is handing over the reins in June, said the company’s 772.2 billion yen (€7.5 billion) net loss capped a turbulent six-year period when the diversified manufacturer was rocked by the external forces from the global recession to last year’s earthquake in Japan and flooding in Thailand.
But he said management had made a mistake by investing so heavily in production of LCD and plasma televisions in 2006 before the downturn began. “This was an excessive investment, something which I regret,” said Mr Ohtsubo. – (Reuters)
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